When is the disbursement time? Upon signing the loan?

Hello everyone,

we have agreed with the sellers of a piece of land and would like to go to the notary together soon. The land is developed and occupied until 15.09.17, so we can only start with the demolition and new construction on that day. It has been agreed to record in the notary contract that 15.09.17 is the payment deadline and handover of the land. This raises the following questions/topics:

1. As far as I understand, I must/should already have financing available at the notary appointment, i.e. the loan will be applied for before the notary appointment. Is that correct? Or is a financing confirmation without applying for the loan sufficient here? (Does such a thing even exist?)

2. When does the availability period begin? Always immediately with the application for the loan? Ideally, it would begin with the first drawdown.

How would you approach something like this? One option would be a preliminary contract that provides security until the notary appointment.

I would appreciate any tips on how to proceed best.

Regards Martin

1. Actually, the notary couldn't care less. He just wants to see his money. 2. The clock starts ticking with the signature. Preliminary contracts are usually irrelevant and are at most a letter of intent.

You can of course tell the bank in which periods you need which money.... e.g. 100,000 on day X, the remaining Y euros between day X and Z.

If the bank can do it, it will present you the BHZ-free period in the best possible way (with the appropriate condition), or you bite the bullet and pay BHZ now. In the long run, this could be cheaper than the first-mentioned option.

Addition: If you have a binding offer (without examination and creditworthiness clauses), the bank is indeed willing to finance you. You can then also wait until August/September. However, in this way the interest rate is of course not guaranteed to you.

Thank you for your answers.

I tend to bring the notary appointment forward and accept the BHZ interest. With the purchase of the plot on 15.09.17, a large part would already be due. I think interest rates are currently rising, meaning that if we wait, the interest on the total amount would probably have a more negative effect than the BHZ interest on the remaining amount.

What do you think?

Talk to the bank. If necessary, two loans might also make sense. Number 1 for the [Grundstück], Number 2 for the [Haus]. Otherwise, it will be difficult anyway if I consider your other thread.